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Steve can buy a zero coupon bond that will pay 1000 at the end of 15 years and is currently selling for 239.39. Instead, he

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Steve can buy a zero coupon bond that will pay 1000 at the end of 15 years and is currently selling for 239.39. Instead, he purchases a 1000 face value bond with coupons payable semi-annually at a nominal annual rate of 10% convertible semi-annually that will pay the redemption value of 1000 at the end of 10 years. If he pays X he will earn the same annual effective rate as the zero coupon bond. Calculate X. Select one: A. 970 B. 985 C. 1030 D. 1015 E. 1000

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